As with anything to do with finance, it is important to have a game plan before entering into any type of transaction. When it comes to cars, many consumers are not aware that you can actually refinance your car just like you would your house. While refinancing your car has not been an option in the market for long, it is one that is gaining steam and saving consumers hundreds and sometimes even of dollars over the life of their loans. Car refinance is a viable option for anyone looking to save money.

Should I Consider Refinancing My Car Loan?

Absolutely! If you are like most of us, we financed our last vehicle through a dealership. More times than not, if you financed your last one this way, you are probably paying too much. If you have owned your car for some time, or your job has changed where you are making money, you many qualify for better terms than you got originally. Even if nothing has changed, there is a good chance that the dealer charged you more than the “buy rate” or the amount of interest you were approved for. A dealer makes most of their income off of finance reserve which they earn in marking up your interest rate. Many consumers do not realize that a dealer makes their largest profit margin off of the financing of your vehicle. 

Interest rates are at historic lows so there is really no better time to look for refinance options. You should start by pulling out your old finance contract and review those terms (interest rate, number of payments, etc). You will want this information handy when you begin talking to a lender. There are several options available to most consumers. You can get a lower interest rate than you are currently paying (most common), lower your monthly payment by extending your term, shorten the term and get it paid off sooner or a combination of any of these. 

Go online and find a lender who offers refinance as one of their products. Not every online lender will offer refinancing but there are quite a few out there. Find out more about online refinancing options at OpenRoad Lending. They are an industry leader in auto refinancing and has an A+ Rating with the Better Business Bureau. They were recently named to the inc. Magazine 500 list as the 27th fastest growing company in America as well. 

What Kind of Savings Will You See?

That is a great question and one that I cannot give you an exact answer on without more information. That answer will depend on several factors such as how much did you originally finance, what was the length of time you had to repay it and what is your current interest rate. It is not that uncommon for consumers to save as much as $100 per month off of their existing car payment – same car, just a different lender offering you better terms.  

Do your homework and find a lender that offers refinancing and an online car refinance application. That way you can apply and find out your savings almost immediately. In fact, some lenders will get you approved and your existing lender paid off in just a few days. That might allow you to actually skip a payment putting more in your pocket.

Summary

There are a lot of reasons to spend the time researching auto refinance options. Just a few are listed above. In the end, it takes you going online and completing the process. It could save you a lot of money over the life of your loan. The little bit of time it will take will be well worth it.